US insurer Chubb is in talks to acquire a 49% stake in India’s Kotak General Insurance and has become a more favoured suitor than Zurich Insurance Group, reported Reuters quoting two people with direct knowledge of the discussions.
Chubb has an edge over Zurich because it is more amenable to leaving control with India’s Kotak Mahindra Bank and because Kotak believes it shares more common business areas with Chubb such as auto insurance, according to one of the people.
A deal with Kotak would mark a fresh attempt by Chubb to foray into the Indian market after a deal with HDFC General Insurance ended in 2007.
Zurich has been discussing a stake of either 49% or 51% and the majority stake would likely value the company at around $800m, the sources have previously said.
But if Chubb were to win out, the deal would value Kotak at less than $800m as it would not include a so-called buyout premium, they said.
Kotak, one of India’s smaller general insurance firms, has been looking to sell a stake to achieve faster growth in a market seen as having huge potential. It is controlled by Uday Kotak, who is Asia’s richest banker worth $14bn, according to Forbes.
Chubb and Kotak did not respond to Reuters queries seeking comment.
Chubb, the world’s biggest property and casualty insurer, operates in 54 countries and has nearly $200bn in assets.
